Is There Hidden Value In These Stocks? Arch Coal Inc (ACI) and Vitesse Semiconductor (VTSS)
New York, NY – GDP INSIDER – 04/08/2015.
This article discusses two companies: Arch Coal Inc (NYSE:ACI) and Vitesse Semiconductor (NASDAQ:VTSS)
Arch Coal Inc (NYSE:ACI) started to bounce back yesterday with the stock gaining 6.73% or $0.07 to close at $1.11 with more than 4.652 million shares changing hands, compared to its three month average trading volume of 4.704 million. The supplier of cleaner burning metallurgical coal for power generators has been trending down for the last 52 weeks, with the shares price down 77.89% for the period and down 37.64% this year so far. The stock started to gain as its share price was looking undervalued. But with stronger currency concerns, reports of warmer weather in the Midwest and a U.S. Energy Information Administration (EIA) report that natural gas production is still increasing, its trading environment is difficult. However, Arch Coal Inc has been fighting back by striving hard to cut costs and has suspended its dividend to maintain liquidity. For now, the stock is at best a hold.
Vitesse Semiconductor Corp (NASDAQ:VTSS) continued to decline yesterday with the stock falling another 0.09% or $0.005 to close at $5.275 on very heavy trading of 5.358 million shares, compared to its three month average trading volume of 0.874 million. The developer and distributor of integrated circuits for networking and other enterprise applications has been trending slightly downwards, after several investigations were launched into its sale to Microsemi Corp. The concerns surround whether or not the company breached its fiduciary duty to its shareholders and if it broke state law during the process of the sale. With the stock already close to its one year target estimate of $5.41 and disappointing EPS of -$0.28, there is not a lot of potential at this time. However, if its recent legal difficulties can be sorted out without ending up in court, then the stock will most likely start to fly, making it a risky but potentially profitable hold for now.
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